Copper Went Through a “Short-Squeeze,” Is Silver Next?
Overnight, the Precious Metals are lower after yesterday’s blowout rally.
Many of you took positions off the table yesterday; congratulations for actively using proper risk management.
Overnight, stocks are sliding globally as treasury yields spike and fading expectations weigh in on the next interest rate cut. The “higher for longer” theme continues, with some Fed officials discussing the possibility of an interest rate Hike! Wow. The devil is in the details, so let’s look at the CME’s FedWatch Tool from our website!
https://bluelinefutures.com/2024/05/29/precious-metals-catch-fire-what-to-watch-this-week/
Clicking on the upcoming June 12th meeting, we can see a 0.9% chance of a 25 bps hike. In September, the expectations cast a wide range, from 53% (Unchanged) to 41% (25 bps cut), 4% (50 bps cut), and 0.5% (25 bps hike). We are going to have to really watch the data.
In other markets, Copper is grabbing headlines as Anglo-American said it will not give BHP more time to develop a takeover strategy, ending the $49 billion pursuit by the world’s biggest mining company. The decision came just hours before a deadline for BHP to commit to an offer or walk away for six months.
Bank of America released a research piece indicating that “the CME just suffered a short squeeze in Copper”……………is Silver next?
Critical Support – For Position Traders
- Gold – $2326 – 50 DMA & Trend Neutralizer Level
- Silver – Friday’s low $30.23 – A break below this level opens the door to a washout down to $29.06
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